In addition to a slowing economy all over the world, the latest fuel price hike in different region will add more downward pressure on the car market this year, according to industry analysts. It was the biggest increase in government-controlled fuel pricing since June 2009.
The continued increase in the price of crude oil continued to influence pump price all over the world causing fuel to jump at more than a hundred per cent in cost per liter following continuing increases in the cost of crude oil.
Contrary to certain quarters Speculations the demand for high-end and luxury cars won't be as affected.
The price rise will hit consumer confidence, especially for those who buy small, economic vehicles made by domestic carmakers. The market share for domestic brands might continue to slide this year.
Iran threatened to close the Strait of Hormuz if attacked and the fuel prices soared to as high.
